In July, there was a fall year-over-year in new home closings in the Washington, DC market, and the percentage fall that was steeper than June 2015 gave implications of worsening market conditions. New home closings saw a 20.8% decline from a year earlier to 802. This came after a 15.5% fall year-over-year in June.
A total of 10,147 new homes were sold during the 12 months that ended in July, down from 10,358 for the year that ended in June.
Out of all housing closings, new home closings accounted for 9.1%. This is down from the 11.1% of closings a year earlier. Following a year-over-year increase in June, closings of new and existing homes dropped year-over-year in July.
Pricing and Mortgage Trends
Average price of newly sold homes had a 7.3% decline year-over-year to $534,427 per unit in July. This drop follows a move from $530,026 per unit in June 2014 to $528,778 in June 2015.
Average mortgage size on new homes fell year-over-year in contrast to new home prices. It fell to $444,286 in July, a 3.1% decline. In June 2015, average mortgage size gained 2.8% from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings jumped from 47.6% of new closings in July 2014 to 48.8% of closings in July 2015. Meanwhile, attached units as a percentage of all new home closings sank to 51.2% of closings from 52.4% of closings.
For all new homes sold, the average unit size declined 13.7% year-over-year to 2,717 square feet in July 2015. In June, the average size of new homes sold went from 3,080 square feet a year earlier to 3,068 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 10.3% of existing home closings, below 17.0% a year earlier. The percentage of existing home closings involving foreclosures fell to 4.0% in July from 9.9% a year earlier and REO closings moved from 7.1% of existing home closings in July 2014 to 6.3% in July 2015.